Broadcom Inc. is in talks to acquire VMware Inc., the cloud-computing company backed by billionaire Michael Dell, setting up a blockbuster tech deal that would vault the chipmaker into a highly specialized area of software.
The takeover discussions are ongoing and there’s no guarantee they will lead to an agreement, people with knowledge of the matter said, asking not to be identified because the talks are private. VMware currently has a market valuation of about $40 billion. Assuming a typical premium, the potential deal price would be higher, though the terms under consideration couldn’t be learned.
Shares in VMware rose as much as 21% on Monday morning in New York, the most since 2007. That gives the company a market value of $48 billion. Broadcom, which has a valuation of about $216 billion, fell 2.7%.
